Correlation Between InPlay Oil and OFFICE DEPOT
Can any of the company-specific risk be diversified away by investing in both InPlay Oil and OFFICE DEPOT at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining InPlay Oil and OFFICE DEPOT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InPlay Oil Corp and OFFICE DEPOT, you can compare the effects of market volatilities on InPlay Oil and OFFICE DEPOT and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in InPlay Oil with a short position of OFFICE DEPOT. Check out your portfolio center. Please also check ongoing floating volatility patterns of InPlay Oil and OFFICE DEPOT.
Diversification Opportunities for InPlay Oil and OFFICE DEPOT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InPlay and OFFICE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InPlay Oil Corp and OFFICE DEPOT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFFICE DEPOT and InPlay Oil is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on InPlay Oil Corp are associated (or correlated) with OFFICE DEPOT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFFICE DEPOT has no effect on the direction of InPlay Oil i.e., InPlay Oil and OFFICE DEPOT go up and down completely randomly.
Pair Corralation between InPlay Oil and OFFICE DEPOT
If you would invest 109.00 in InPlay Oil Corp on October 13, 2024 and sell it today you would earn a total of 11.00 from holding InPlay Oil Corp or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InPlay Oil Corp vs. OFFICE DEPOT
Performance |
| Timeline |
| InPlay Oil Corp |
| OFFICE DEPOT |
InPlay Oil and OFFICE DEPOT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InPlay Oil and OFFICE DEPOT
The main advantage of trading using opposite InPlay Oil and OFFICE DEPOT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InPlay Oil position performs unexpectedly, OFFICE DEPOT can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in OFFICE DEPOT will offset losses from the drop in OFFICE DEPOT's long position.| InPlay Oil vs. MAGNUM MINING EXP | InPlay Oil vs. Calibre Mining Corp | InPlay Oil vs. SPORTING | InPlay Oil vs. JD SPORTS FASH |
| OFFICE DEPOT vs. TRI CHEMICAL LABORATINC | OFFICE DEPOT vs. PTT Global Chemical | OFFICE DEPOT vs. TIANDE CHEMICAL | OFFICE DEPOT vs. Cleanaway Waste Management |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |